- \n
- Net Sales of $1.1 Billion Up 15.4% YoY; Up 15.0% on an Organic Basis<\/i><\/li>\n
- Net Income of $97.2 Million, or $2.47 Per Share<\/i><\/li>\n
- Adjusted Net Income of $93.5 Million, or $2.38 Per Share Up 36.3% YoY<\/i><\/li>\n
- EBITDA of $140.3 Million Up 29.2% YoY<\/i><\/li>\n
- Updating Fiscal 2023 Guidance to Reflect Fiscal Third Quarter Performance<\/i><\/li>\n<\/ul>\n
CLEVELAND–(BUSINESS WIRE<\/a>)–
\nApplied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2023 third quarter ended March 31, 2023.<\/p>\n\nNet sales for the quarter increased 15.4% to $1.1 billion from $980.7 million in the prior year. The change includes a 0.7% increase from acquisitions, offset by a negative 0.3% impact from foreign currency translation. Excluding these factors, sales increased 15.0% on an organic basis reflecting a 16.1% increase in the Service Center segment and a 13.1% increase in the Engineered Solutions segment. The Company reported net income of $\u00ad\u00ad\u00ad97.2 million, or $2.47 per share, and EBITDA of $140.3 million. Results include a net tax benefit of $3.7 million, or $0.09 per share, from a deferred tax valuation allowance adjustment. Excluding this item, the Company reported non-GAAP adjusted net income of $93.5 million, or $2.38 per share. On a pre-tax basis, results include $8.2 million ($0.16 after tax per share) of LIFO expense compared to $7.4 million ($0.14 after tax per share) of LIFO expense in the prior-year period.<\/p>\n
\nNeil A. Schrimsher, Applied\u2019s President & Chief Executive Officer, commented, \u201cWe reported another solid quarter as sales grew over 15% with ongoing support from our industry position. We continued to expand gross margins while remaining focused on managing costs given the current backdrop. These dynamics drove strong EBITDA margin expansion and earnings growth. At the same time, we remain focused on our investments in talent, technology, and our service solutions as we further enhance our capabilities and operational strength for the future. Overall, we continue to demonstrate the benefits of our strategy and ability to consistently execute.\u201d<\/p>\n
\nMr. Schrimsher added, \u201cLooking ahead, we remain constructive on underlying industrial sector fundamentals within North America. Customer feedback remains generally positive, while our internal initiatives and technical capabilities are supporting new growth opportunities. That said, consistent with our prior outlook and recent macroeconomic industrial reports, we expect underlying market demand and orders to continue to moderate near term as broader industry activity normalizes and customers rebalance spending levels against current macro uncertainty. Month to date in April, sales are trending up by a high single-digit percent on an organic basis compared to the prior year. Our diverse mix of growth tailwinds and business evolution puts us in a favorable position to sustain above-market growth, and our track record highlights our ability to execute across all parts of the cycle. Lastly, our balance sheet and liquidity are in a solid position, and we expect stronger cash generation going forward.\u201d<\/p>\n
Updated Fiscal 2023 Guidance
\n
<\/b>For fiscal 2023, the Company now projects EPS of $8.47 to $8.60 on an adjusted basis (prior $8.10 to $8.50), sales growth of 14% to 15% (prior 13% to 15%), and EBITDA margins of 11.7% to 11.8% (prior 11.5% to 11.7%). Updated adjusted EPS guidance excludes the $3.7 million net tax benefit in the fiscal 2023 third quarter related to a deferred tax valuation allowance adjustment. Guidance incorporates ongoing economic uncertainty and inflationary pressures. Guidance does not assume contribution from potential future acquisitions.<\/p>\nDividend
\n
<\/b>Today the Company announced that its Board of Directors declared a quarterly cash dividend of $0.35 per common share, payable on May 31, 2023, to shareholders of record on May 15, 2023.<\/p>\nConference Call Information
\n
<\/b>Applied will host its quarterly conference call for investors and analysts at 10 a.m. ET on April 27, 2023. Neil A. Schrimsher \u2013 President & CEO, and David K. Wells \u2013 CFO will discuss the Company’s performance. A supplemental investor presentation detailing latest quarter results and the Company\u2019s outlook is available for reference on the investor relations portion of the Company\u2019s website at www.applied.com<\/a>.To join the call, dial 800-945-5981 (toll free) or 212-231-2929 (for International callers) using conference ID 22026611. A live audio webcast can be accessed online through the investor relations portion of the Company’s website at www.applied.com<\/a>. A replay of the call will be available for two weeks by dialing 800-633-8625 or 402-977-9141 (International) using conference ID 22026611.<\/p>\nAbout Applied\u00ae
\n
<\/sup><\/b>Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO and OEM end users in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit www.applied.com<\/a>.<\/p>\n\nThis press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as \u201cexpect,\u201d \u201cwill,\u201d \u201cguidance,\u201d \u201cprojects,\u201d \u201cassume\u201d, and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends in the industrial sector of the economy (such as the inflationary environment and supply chain strains), the effects of the health crisis associated with the COVID-19 pandemic on our business operations, results of operations, and financial condition, and other risk factors identified in Applied’s most recent periodic report and other filings made with the Securities and Exchange Commission, many of which risks are amplified by circumstances arising out of the COVID-19 pandemic. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise.<\/p>\n
\n
\n \n APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n CONDENSED STATEMENTS OF CONSOLIDATED INCOME<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n(Unaudited)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(In thousands, except per share data)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n Three Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n
\n Nine Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Sales<\/b><\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n1,132,035<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n980,662<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n3,254,720<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n2,749,217<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cost of sales<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n798,917<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n693,338<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,306,314<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n1,948,928<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Gross Profit<\/b><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n333,118<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n287,324<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n948,406<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n800,289<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Selling, distribution and administrative expense,<\/td>\n \n \n \n \n <\/tr>\n \n \n \nincluding depreciation<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n206,207<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n191,481<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n602,070<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n551,655<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Operating Income<\/b><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n126,911<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n95,843<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n346,336<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n248,634<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Interest expense, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,773<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n5,852<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n17,438<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n20,249<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Other (income) expense, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(142<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n469<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,624<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(712<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Income Before Income Taxes<\/b><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n122,280<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n89,522<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n327,274<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n229,097<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Income tax expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n25,093<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n21,216<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n72,750<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n50,796<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Income<\/b><\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n97,187<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n68,306<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n254,524<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n178,301<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Income Per Share – Basic<\/b><\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n2.52<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n1.78<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n6.60<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n4.63<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Income Per Share – Diluted<\/b><\/td>\n \n \n$<\/p>\n<\/td>\n
\n \n2.47<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n1.75<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n6.49<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n4.56<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Average Shares Outstanding – Basic<\/b><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n38,617<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n38,453<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n38,574<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n38,470<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Average Shares Outstanding – Diluted<\/b><\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n39,268<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n39,098<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n39,203<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n39,102<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<\/b><\/td>\n<\/tr>\n \n (1) Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory. An actual valuation of inventory under the LIFO method can only be made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination.<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n
\n APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n CONDENSED CONSOLIDATED BALANCE SHEETS<\/b><\/td>\n<\/tr>\n \n (Unaudited)<\/td>\n<\/tr>\n \n (In thousands)<\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n March 31, 2023<\/b><\/td>\n \n June 30, 2022<\/b><\/td>\n<\/tr>\n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Assets<\/span><\/b><\/td>\n \n \n \n <\/tr>\n \n Cash and cash equivalents<\/td>\n \n \n \n$<\/p>\n<\/td>\n
\n \n182,127<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n184,474<\/p>\n<\/td>\n<\/tr>\n
\n Accounts receivable, net<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n705,638<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n656,429<\/p>\n<\/td>\n<\/tr>\n
\n Inventories<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n526,978<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n449,821<\/p>\n<\/td>\n<\/tr>\n
\n Other current assets<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n92,002<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n68,805<\/p>\n<\/td>\n<\/tr>\n
\n Total current assets<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,506,745<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,359,529<\/p>\n<\/td>\n<\/tr>\n
\n Property, net<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n115,383<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n111,896<\/p>\n<\/td>\n<\/tr>\n
\n Operating lease assets, net<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n101,960<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n108,052<\/p>\n<\/td>\n<\/tr>\n
\n Intangibles, net<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n243,133<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n250,590<\/p>\n<\/td>\n<\/tr>\n
\n Goodwill<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n577,235<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n563,205<\/p>\n<\/td>\n<\/tr>\n
\n Other assets<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n64,182<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n59,316<\/p>\n<\/td>\n<\/tr>\n
\n Total Assets<\/b><\/td>\n \n \n $<\/b><\/p>\n<\/td>\n
\n 2,608,638<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 2,452,588<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Liabilities<\/span><\/b><\/td>\n \n \n \n <\/tr>\n \n \n \nAccounts payable<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n276,024<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n259,463<\/p>\n<\/td>\n<\/tr>\n
\n Current portion of long-term debt<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n25,196<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n40,174<\/p>\n<\/td>\n<\/tr>\n
\n Other accrued liabilities<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n179,372<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n199,990<\/p>\n<\/td>\n<\/tr>\n
\n Total current liabilities<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n480,592<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n499,627<\/p>\n<\/td>\n<\/tr>\n
\n Long-term debt<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n597,006<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n649,150<\/p>\n<\/td>\n<\/tr>\n
\n Other liabilities<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n150,380<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n154,456<\/p>\n<\/td>\n<\/tr>\n
\n Total Liabilities<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n 1,227,978<\/b><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 1,303,233<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Shareholders’ Equity<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n 1,380,660<\/b><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 1,149,355<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Total Liabilities and Shareholders’ Equity<\/b><\/td>\n \n \n $<\/b><\/p>\n<\/td>\n
\n 2,608,638<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 2,452,588<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n \n CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n(Unaudited)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(In thousands)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n Nine Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Cash Flows from Operating Activities<\/span><\/b><\/td>\n \n \n \n <\/tr>\n \n Net income<\/td>\n \n \n \n$<\/p>\n<\/td>\n
\n \n254,524<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n178,301<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Adjustments to reconcile net income to net cash provided by operating activities:<\/td>\n \n \n \n <\/tr>\n \n Depreciation and amortization of property<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n16,598<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n16,215<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Amortization of intangibles<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n23,189<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n24,096<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Provision for losses on accounts receivable<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,676<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,905<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Amortization of stock appreciation rights and options<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,322<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,897<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Other share-based compensation expense<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,419<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n6,064<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Changes in assets and liabilities, net of acquisitions<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(142,092<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(106,136<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Other, net<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,609<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n9,481<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Cash provided by Operating Activities<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n 164,027<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n 133,823<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cash Flows from Investing Activities<\/span><\/b><\/td>\n \n \n \n <\/tr>\n \n Acquisition of businesses, net of cash acquired<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(35,667<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(6,974<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Capital expenditures<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(20,809<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(11,674<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Proceeds from property sales<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n226<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n494<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Life insurance proceeds<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,159<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cash payments for loans on company-owned life insurance<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(14,835<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Net Cash used in Investing Activities<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n (56,250<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n (29,830<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Cash Flows from Financing Activities<\/span><\/b><\/td>\n \n \n \n <\/tr>\n \n Net (repayments) borrowings under revolving credit facility<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(27,000<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n442,592<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Long-term debt repayments<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(40,185<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(550,432<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Interest rate swap settlement receipts (payments)<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n5,501<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,812<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Payment of debt issuance costs<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,956<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Purchases of treasury shares<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(716<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(13,604<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Dividends paid<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(39,829<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(38,612<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Acquisition holdback payments<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(1,510<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,361<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Taxes paid for shares withheld for equity awards<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(7,914<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,405<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Exercise of stock appreciation rights and options<\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n127<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n224<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Cash used in Financing Activities<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n (111,526<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n (173,366<\/b><\/p>\n<\/td>\n
\n )<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Effect of Exchange Rate Changes on Cash<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,402<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(288<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Decrease in cash and cash equivalents<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(2,347<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(69,661<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Cash and Cash Equivalents at Beginning of Period<\/b><\/td>\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n \n184,474<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n257,745<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Cash and Cash Equivalents at End of Period<\/b><\/td>\n \n \n $<\/b><\/p>\n<\/td>\n
\n 182,127<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 188,084<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \u00a0<\/td>\n<\/tr>\n<\/table>\n \n
\n APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES<\/b><\/td>\n<\/tr>\n \n \n SUPPLEMENTAL INFORMATION<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n(Unaudited)<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(In thousands)<\/p>\n<\/td>\n<\/tr>\n
\n <\/tr>\n \n \n \nThe Company supplemented the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. These non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n
\n Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and
Adjusted Net income per share, non-GAAP financial measures:<\/b><\/td>\n<\/tr>\n\n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Three Months Ended March 31, 2023<\/b><\/td>\n<\/tr>\n \n \n Pre-tax<\/b><\/td>\n Tax Effect<\/b><\/td>\n \n Net of Tax<\/b><\/td>\n Per Share
Diluted Impact<\/b><\/td>\nTax Rate<\/b><\/td>\n<\/tr>\n \n Net income and net income per share<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 122,280<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 25,093<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 97,187<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 2.47<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 20.5<\/b><\/p>\n<\/td>\n
\n %<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Tax valuation allowance adjustment, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n3,657<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,657<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.09<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n3.0<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n Adjusted net income and net income per share<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 122,280<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 28,750<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 93,530<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 2.38<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 23.5<\/b><\/p>\n<\/td>\n
\n %<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n Nine Months Ended March 31, 2023<\/b><\/td>\n<\/tr>\n \n \n Pre-tax<\/b><\/td>\n Tax Effect<\/b><\/td>\n \n Net of Tax<\/b><\/td>\n Per Share
Diluted Impact<\/b><\/td>\nTax Rate<\/b><\/td>\n<\/tr>\n \n Net income and net income per share<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 327,274<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 72,750<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 254,524<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 6.49<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 22.2<\/b><\/p>\n<\/td>\n
\n %<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Tax valuation allowance adjustment, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n–<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n3,657<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(3,657<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(0.09<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n1.1<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n Adjusted net income and net income per share<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 327,274<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 76,407<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 250,867<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 6.40<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 23.3<\/b><\/p>\n<\/td>\n
\n %<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n
\n Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure:<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Three Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n
\n Nine Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Net Income<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 97,187<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 68,306<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 254,524<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 178,301<\/b><\/p>\n<\/td>\n<\/tr>\n
\n Interest expense, net<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,773<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n5,852<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n17,438<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n20,249<\/p>\n<\/td>\n<\/tr>\n
\n Income tax expense<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n25,093<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n21,216<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n72,750<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n50,796<\/p>\n<\/td>\n<\/tr>\n
\n Depreciation and amortization of property<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n5,565<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n5,352<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n16,598<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n16,215<\/p>\n<\/td>\n<\/tr>\n
\n Amortization of intangibles<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n7,670<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n7,891<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n23,189<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n24,096<\/p>\n<\/td>\n<\/tr>\n
\n EBITDA<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 140,288<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 108,617<\/b><\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 384,499<\/b><\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 289,657<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure.<\/td>\n<\/tr>\n<\/table>\n \n
\n Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure:<\/b><\/td>\n<\/tr>\n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n Three Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n\n \n\u00a0<\/p>\n<\/td>\n
\n Nine Months Ended
\n
March 31,<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2023<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n 2022<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Net Cash provided by Operating Activities<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 75,204<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 52,559<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 164,027<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 133,823<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n Capital expenditures<\/td>\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(7,992<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(4,164<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(20,809<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(11,674<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n Free Cash Flow<\/b><\/td>\n \n $<\/b><\/p>\n<\/td>\n
\n 67,212<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 48,395<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n $<\/b><\/p>\n<\/td>\n
\n 143,218<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n $<\/b><\/p>\n<\/td>\n
\n 122,149<\/b><\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure.<\/td>\n<\/tr>\n<\/table>\n \n\u00a0<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230427005108\/en\/<\/a><\/span><\/p>\n
\nRyan D. Cieslak
\n
Director \u2013 Investor Relations & Treasury
\n
216-426-4887 \/ rcieslak@applied.com<\/a><\/p>\nKEYWORDS:<\/b> Ohio United States North America<\/p>\n
INDUSTRY KEYWORDS:<\/b> Other Manufacturing Electronic Design Automation Machinery Engineering Chemicals\/Plastics Technology Manufacturing Other Technology<\/p>\n
- Net Income of $97.2 Million, or $2.47 Per Share<\/i><\/li>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230427005108\/en\/718335\/3\/New_Applied_Logo_06_300dpi_rgb.jpg\"){kind=logo}
<\/td>\n<\/tr>\n